question

51. Scarcity occurs when peoples needs and wants are unlimited and the resources needed to produce the goods and services to meet those needs and wants are limited

answer

True

question

1. Entrepreneurs try to meet the needs of the marketplace by supplying a product or service

answer

True

question

2. Entrepreneurs and employees are both directly affected by the consequences of the decisions they make

answer

False

question

52. Opportunity cost is the cost of the last alternative

answer

False

question

3. Manufacturing businesses produce the products they sell

answer

True

question

53. The functions of businesses operate independently of each other

answer

False

question

4. Entrepreneurial businesses include retailing businesses, such as clothing and furniture stores, but do not include service businesses

answer

False

question

54. A market economy is based on personal choice

answer

True

question

5. A travel agency is a retailing business

answer

False

question

55. Traditional economies are used in developed countries

answer

False

question

56. A mixed economy often results in when a country shifts away from command economy toward a market economy but still has government involvement in the marketplace

answer

True

question

6. Entrepreneurs constantly change U.S. business and contribute to the nation's overall good

answer

True

question

7. Small firms with fewer than 500 employees represent about 25% of all businesses in the U.S. today

answer

False

question

57. Communism is another name for the economic system in the U.S.

answer

False

question

8. The owner's of a business experience is a factor that contributes to the like hood of success

answer

True

question

58. The rivalry among businesses to sell their goods and services is called competition

answer

True

question

9. Small businesses contribute billions of dollars to the U.S. economy every year

answer

True

question

59. The value of the next-best economic alternative is the tradeoff cost

answer

False

question

10. Small companies cannot take as many risks as large companies, so small companies are likely to be innovative

answer

False

question

60. A Marketing mix is the combination of product, distribution, price , and promotion

answer

True

question

11. Successful entrepreneurs need to be self-confident because they must make decisions alone, but they do not need to be creative because they can hire creative people

answer

False

question

61. The supply curve for a market economy shows that as the price os a good or services rises, suppliers are willing to produce more of the good or service

answer

True

question

12. Entrepreneurs need to able to make quick decisions

answer

True

question

62. The demand curve for market economy shows that as the price of a good or service rises, individuals are willing to consume more of the good or service

answer

False

question

13. To determine if entrepreneurship is right for you, you need to perform a self-assessment

answer

True

question

63. Demand elasticity occurs when demand for a product is affected by its price

answer

True

question

64. In market with perfect competition, a small number of businesses gain the majority of total sales

answer

False

question

14. Everyone has the qualities and aptitude needed to become a successful entrepreneur

answer

False

question

15. Your past experiences are key factors in determining your commitment to a business

answer

True

question

65. Inelastic demand occurs when a change in price creates more demand

answer

False

question

16. Aptitude is the ability to evaluate your strengths and weaknesses

answer

False

question

66. When a company controls all of the market, it is a monopoly

answer

True

question

17. Before starting a business, it is important to identify the kinds of entrepreneurial opportunities that match your aptitudes and interests

answer

True

question

67. Fixed costs must be paid even if a company has no sales

answer

True

question

68. When the quantity of good or service produced increases, variable costs remain the same

answer

False

question

18. Entrepreneurial involves risk, which is both an advantage and a disadvantage

answer

True

question

19. An advantage of entrepreneurship is that nobody tells and entrepreneur what to do

answer

True

question

69. Marginal benefit measures the advantages of producing one additional unit of a good

answer

True

question

20. An advantage of entrepreneurship is that owners make all of the decisions by themselves

answer

False

question

70. It is difficult for new businesses to enter businesses in a market with an oligopoly market structure

answer

False

question

71. A business plan provides financial information that shows how businesses will earn a profit

answer

True

question

21. Libraries have publications that provide data of interest to entrepreneurs

answer

True

question

22. Many companies display their products at the Small Business Administration (SBA)

answer

False

question

72. How a business will get and keep customers is not a part of a business plan

answer

False

question

23. You can learn about business opportunities by talking to other entrepreneurs

answer

True

question

73. A business plan does not give suppliers much confidence when it comes to extending credit

answer

False

question

24. Assessing different opportunities help you identify those most likely to succeed

answer

True

question

74. Businesses must have a completely new product or services to convince investors that the idea is solid

answer

False

question

25. To decide whether or not a business opportunity is realistic for you, compare your background and experience with the experience of people who own that kind of business

answer

True

question

75. A good business plan includes sales projections for the short, medium, and long term and sets forth future business plans

answer

True

question

76. The backgrounds and experience of the people who will be running the business help lenders make the financing decisions

answer

True

question

26. It is not necessary to determine how much money it will take to start a business because you will be able to borrow the money you need

answer

False

question

27. Financial goals may include how quickly you can pay your debts

answer

True

question

77. A business plan will not help you think about all of the aspects of your business

answer

False

question

78. Writing a business plan can help you identify problems you might encounter in the future

answer

True

question

28. Ideas are thoughts or concepts that come from creative thinking

answer

True

question

79. Lenders require a business plan before they will consider financing a business

answer

True

question

29. Non-Financial goals are only for entrepreneurs who are solely interested in financial gain

answer

False

question

80. After your business is up and running, you will rarely use your business plan

answer

False

question

30. Your financial and non-financial goals do not have to be realistic

answer

False

question

31. The best entrepreneurs use a formal problem-solving model to make decisions

answer

True

question

81. Entrepreneurs estimate demand for their products and services by identifying their target market

answer

True

question

32. Defining and quantifying the problem is the first step in the problem-solving process

answer

True

question

82. Understanding your customers allows you to meet customer demands

answer

True

question

33. Identifying one or two possible solutions is usually sufficient

answer

False

question

83. Demographics describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits

answer

False

question

84. A customer profile should include demographic data but not psychographic data

answer

False

question

34. Quantifying a problem helps a business owner determine how much it is worth to them to solve it

answer

True

question

85. Marital status, family size, and age are useful data for identifying your target market

answer

True

question

35. The problem solving process is not complete until the action is evaluated

answer

True

question

86. Segmenting your market is usually not necessary because most markets are small

answer

False

question

36. The fourth step in the problem solving process is brainstorming

answer

False

question

87. Data that helps you determine how often potential customers use a particular service is called customer profile

answer

False

question

37. Communication and listening skills are vital to the problem-solving process

answer

True

question

38. Brainstorming is always done in a group setting; it is a useful activity for an individual

answer

False

question

88. A Market segment is made up of people with common characteristics

answer

True

question

39. Following a brainstorming session, a decision should be made immediately

answer

False

question

89. Customers should never be profiled based on geographic data

answer

False

question

40. Entrepreneurs should not be afraid of making mistakes

answer

True

question

90. A marketing strategy identifies customers that you can better serve than your competitors, but it cannot help you determine the size of your market

answer

False

question

41. Both types of wants--economic and non-economic--form the basis of an economy

answer

False

question

91. A marketing mix is the blending of product, distribution, price, and promotion to satisfy a target market

answer

True

question

42. Needs are things that you must have in order to survive

answer

True

question

92. Establishing short-, medium-, and long-term marketing goals ensures that the marketing you do today fits the vision you have for your business tomorrow

answer

True

question

43. The role of businesses is to produce and distribute goods and services that people need and wants

answer

True

question

93. Long-term goals are what you want your business to achieve in the next 2 or 3 years

answer

False

question

94. Short-term goals should not be listed in terms of product price, distribution, and promotion

answer

False

question

44. The most basic of needs is security

answer

False

question

45. Needs and wants are unlimited

answer

True

question

95. Medium-term goals are used to create strategies for each element of the marketing mix

answer

False

question

96. If a short-term goal is to generate traffic in a retail store, the marketing strategy should focus on the market share of the competition

answer

False

question

46. Economic resources are not factors of production

answer

False

question

97. Long-term goals show where you would like your business to be in 5 or 10 years from now but do not help you think about how to market your business today

answer

False

question

47. Services must be provided to you at the time you need them--they cannot be stores

answer

True

question

98. A written marketing plan can help you define your market and identify your customers

answer

True

question

48. Human resources rarely perform specialized labor

answer

False

question

99. The marketing concept uses the needs of entrepreneurs as the primary focus during the planning, production, distribution, and promotion of a product or service

answer

False

question

49. Natural resources are not limited

answer

False

question

100. Researching industry norms and past performances will help you develop appropriate performance standards for your marketing plan

answer

True

question

50. Capital resources include buildings and equipment

answer

True

question

What can not provide additional information about direct competition

answer

Reasearch a competitor's business plan

question

Today China operate's under a what economy

answer

Mixed economy

question

The psychologist who developed a theory on the hierarchy of needs was who

answer

Abraham Maslow

question

A business plan's title page includes everything but

answer

A summary of the plan

question

A letter that introduces and explains an accompanying document is called a what

answer

Cover letter

question

Price is one of the elements of what

answer

Marketing mix

question

Creating an image for a product in the customers mind is called what

answer

Positioning

question

Bernie Marcus and Arthur Blank did what

answer

Opened the first Home Depot Stores

question

Information about necessary equipment for your business is included in the what section

answer

Operations section

question

What need involves something that provides a sense of accoplishment such as earning a college degree

answer

Self-actualization

question

In the U.S History, entrepreneurs have what

answer

been an important part of the American economy

question

Secondary data is found where

answer

in news papers, internet, and government publications

question

Which of the following is not an element of the financial management section of your plan A. Financial Statements B. Distribution of profits and loses C. Funding request and return on an investment D. Identification of risks

answer

B. Distribution of profits and loses

question

Your busniess plan must A. Be consistant B. Nver overlook the competition C. All of these D. Clearly define your market

answer

C. All of these

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